How to Buy Property in Malaysia with Zero Capital

Zero Capital Investment typically refers to using a combination of 100% Loan Financing, EPF Account 2 Withdrawals, and Developer Rebates to cover the initial 10% down payment and legal fees. This strategy is widely used by first-time buyers and M40 investors in Malaysia.

  • No upfront cash needed
  • EPF-backed strategy
  • Legal & transparent

Standard Buy vs. Zero Capital Strategy

See the real numbers. Compare paying cash upfront versus using the smart Zero Capital approach for a RM500,000 property.
Cost Item
Standard Way
(Cash Heavy)
Zero Capital Way
(Smart Strategy)
Down Payment (10%)
RM 50,000
Cash out of pocket
RM 0
100% Loan / Dev Rebate
Legal & SPA Fees
RM 15,000
Cash required
RM 0
Absorbed by Developer
Stamp Duty (MOT)
RM 8,000
Cash required
RM 0
2026 MOT Exemption
EPF Account 2
Untouched
Savings remain idle
Withdrawn
For deposit or cash-back
Total Cash Needed
RM 73,000
RM 500
(Booking fee only)
You Save:
RM 72,500
  • Keep your savings. Use your EPF strategically.

How to Use EPF Account 2 for Zero Upfront Costs

Follow this step-by-step process to leverage your EPF savings for property investment without draining your bank account.

Secure the Unit

Pay the booking fee (typically RM500-RM1,000) to lock in your property choice with the developer.

Pro Tip: Ensure the developer is registered under HDA for protection.

Sign SPA & Loan Agreement

Execute the Sale & Purchase Agreement and get your bank loan approved. Wait for the formal loan offer letter.

Pro Tip: Apply to multiple banks to get the best interest rates.

Submit to KWSP (EPF)

Use the i-Akaun portal to upload your stamped SPA and loan documents. Apply for Account 2 withdrawal.

Pro Tip: Processing takes 14-21 working days on average.

Disbursement

EPF funds are credited directly to your bank account or to the developer, depending on your application type.

Pro Tip: You can withdraw up to 10% of property price + legal fees.

Government Support Initiatives 2026

These official programs make zero capital investment possible. Combine them strategically for maximum benefit.
Gig Economy / Freelancers

SJKP

Skim Jaminan Kredit Perumahan

Government-guaranteed home loans for the gig economy, freelancers, and those without fixed income proof.
Eligibility: Income RM3,000 - RM10,000/month
100% Financing

SRP

Skim Rumah Pertamaku

Get up to 110% financing for your first home, covering the purchase price plus MRTT insurance.
Eligibility: First-time buyers below age 40
Stamp Duty Waiver

MOT Exemption 2026

Stamp Duty Waiver

Full exemption on Memorandum of Transfer stamp duty for first-time buyers under specific conditions.
Eligibility: Properties under RM500,000

Important: Government schemes and eligibility criteria may change. Always verify the latest requirements on official portals like KWSP,Cagamas, or MOF.

Frequently Asked Questions

Get answers to the most common questions about zero capital property investment in Malaysia.

Yes, zero capital investment is completely legal in Malaysia, provided all documents (SPA, Loan Agreement) accurately reflect the true purchase price. The "zero capital" aspect typically comes from developer rebates, EPF withdrawals, or cashback arrangements that are structured within legal bounds. Always ensure your developer is reputable and registered under HDA (Housing Development Act).

Yes, you can use EPF Account 2 for a second property purchase under specific conditions. You must have either sold your first property, or you are purchasing the second house for "Love & Care" purposes (for immediate family members). The property must be in Malaysia and you need to provide supporting documents to KWSP.

For property purchase, you can withdraw from EPF Account 2: (1) Up to 10% of the property price to cover down payment, plus (2) Legal and incidental fees. The withdrawal amount cannot exceed your Account 2 balance. For monthly installments reduction, you can withdraw up to 10% to reduce your loan principal.

The EPF (KWSP) withdrawal process typically takes 14-21 working days from the date of complete submission through i-Akaun. Ensure all documents (stamped SPA, loan agreement, property valuation report if required) are properly uploaded to avoid delays.

SJKP (Skim Jaminan Kredit Perumahan) is a government-guaranteed housing loan scheme designed for Malaysians without fixed income documents. This includes gig workers, freelancers, small business owners, and informal sector workers earning between RM3,000-RM10,000 monthly. It provides access to financing that traditional banks might otherwise reject.

While zero capital investment reduces upfront cash needs, you should consider: (1) Higher monthly installments due to larger loan amounts, (2) Potential negative equity if property values drop, (3) Your EPF retirement savings being reduced. Always ensure your monthly commitment is sustainable and factor in a buffer for interest rate changes.

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